For this exercise, use Excel, MegaStat, or MINITAB to make an attractive, well-labeled time-series line chart. Adjust the Y-axis scale if necessary to show more detail (since Excel usually starts the scale at zero). If a fitted trend is called for, use Excel's option to display the equation and R2 statistic (or MAPE, MAD, and MSD in MINITAB). Include printed copies of all relevant graphs with your answers to each exercise.
14.10 (a) Choose one time-series describing Spirit Airlines and make a line chart.
(b) Describe the trend (if any) and discuss possible causes.
(c) Fit both a linear and an exponential trend to the data.
(d) Which model is preferred? Why?
(e) Make a forecast for 2003, using a trend model of your choice (or a judgment forecast).
Growth of Spirit Airlines, 1998-2002
Year Revenue ($ mil) Aircraft FT Employees
1998 131 14 860
1999 227 20 1,440
2000 311 24 1,729
2001 354 27 2,094
2002 403 28 2,345
The solution provides step by step method for the calculation of time series model for airline data . Formula for the calculation and Interpretations of the results are also included.